Friday May 17th, 2013 - 11:03AM
HILTON HEAD, SC—HOTEL BUSINESS® has learned Wright Investment Properties’ Hospitality Opportunity Fund (HOF) in its first deal with investment partner, Somera Capital Management, acquired the Hampton Inn on Hilton Head Island.
The joint venture plans to spend approximately $500,000 in renovations to the 121-room hotel, including upgrades to the public space, guestrooms, exterior façade, landscaping and pool area.
“The hotel was acquired at a significant discount to replacement cost and has been in need of the appropriate stewardship,” said Larry F. Wright Jr., President/CEO of Wright Investment Properties. “It is a classic case of a Hilton-branded, well-located asset that needs a targeted renovation and aggressive management to maximize its potential value. We see this as an attractive investment opportunity for both Somera Capital Management and Wright. This is our first transaction with Somera and we look forward building a multi-project relationship with them. Regarding Wright’s Hospitality Opportunity Fund, this is the third investment and the second in four months.”
“We are very pleased to be in a venture with Wright, [which] has experience with the Hilton brand in leisure markets like Hilton Head, which will be a unique strength in [its] operation of the property. Our venture will focus on maximizing the hotel’s potential and providing a best-in-class customer experience,” said Jake Farver, SVP/Somera Capital Management.
Wright Investment Properties, a Memphis-based hotel investment and management firm, manages 38 hotels and has approximately $200 million in acquisition capability via its Hospitality Opportunity Fund joint venture structure.
Wright will provide both operational management and renovation management for the Hampton Inn Hilton Head Island.
Somera Capital Management is a real estate private-equity firm that invests in value-add oriented commercial real estate on behalf of its principals and third-party investors.